There are two ways to become rich: You can make more money, or you can desire less. Being rich certainly is not as beneficial as being happy, but it will improve your quality of life, and thus increase your capacity to live a happy life. (Yes, people who say money can’t buy happiness are quite mistaken).
Happiness is a choice, and being rich or poor is dependent on individual choices (and a bit of luck) that determine your financial destiny. The first step of getting rich, is believing that you can get rich.
Work to acquire assets don’t work for income
Most people are stuck in the rat race, and most people work for income. They trade their time for money at a fixed or variable hourly rate, the lowest leverage method of making money. What you must do to become rich, and escape the rat race, is stop trading time for money, and trade time for assets. An asset should be something that will pay you over and over again, and be something that you can pass down to your children, like a rental property. Work hard to build or acquire assets not money, which is the first step to becoming wealthy.
Avoid buying things that depreciate
Depreciation can mean a couple different things depending on the context. In this context, I’m defining depreciation as something losing value. For instance, you buy a new BMW, once you drive it off the lot, its value depreciates, and it is no longer worth the amount that you paid for it. Buying things that depreciate is sometimes necessary in life, but it is something that should be minimized because it is essentially like burning wealth. The rich know this and try to only purchase things that hold value, or even appreciate in value (like fine art).
Fake it till you make it
Getting rich is a team sport (usually) and that means that you will have to gain the trust and respect of other successful (perhaps rich) people. Keeping your image successful is a superficial, but necessary way, to portray to others that you are a winner. Whether it means spending an extra couple hundred getting that designer suit (even better, getting it tailored), a couple thousand for that Rolex instead of the Timex, or even signing some rapey lease terms to get that flashy sports car, these are all ways to fake it until you make it. There is also a high correlation between people who have better grammar and overall financial success. Learn how to speak and write in a grammatically correct way, and use the lingo and jargon that successful people use. Also, believe that you are rich, walk the walk, talk the talk, and you never know, one day you might wake up and it will be real.
Get mean and Stay lean
I ran my 6 figure a year dating website with just a laptop and a phone. Sure, certain tasks were outsourced, but there was no capital wasted on maintaining employees and office overhead. Today’s phones and computers give you access to tools and apps like never before and it is very possible to manage a cash cow business with just a laptop, Internet, and cellphone.
Education – difference between bill gates and trailer trash
Education is the key to expanding your context, awareness, and ability. Whether you choose to master one subject or learn several, continuing personal education is crucial for financial success. I treat everyday as a new learning experience, and at night or the next day, reflect on the lessons. Always stay hungry to learn things everyday, because when you don’t, that’s the beginning of the loser cycle.
Make more or want less
Yes it’s cliché, but it’s also true, sometimes you don’t need to make more, just need to want less. You’d be surprised how many rich people who are still depressed because the wealth still does not give meaning to their life. So take a second to think about what’s truly important to you, and what you want to get out of life.